A massive contraction in manufacturing, agriculture and mining activity pulled India’s GDP growth rate down to 4.5 per cent in the second quarter ended September 2019-20.
This is the fifth successive quarter of decline and the slowest GDP growth rate over six years. The growth on a year-on-year basis during Q2 2018-19 had stood at 7 per cent.
On a sequential basis, the growth rate came lower than the 5 per cent in Q1 of 2019-20, 5.8 per cent in Q4 2018-19, 6.6 per cent in Q3 2018-19.
At present, India’s economy faces a severe demand slowdown on account of high GST rates, farm distress, stagnant wages and liquidity constraints.
This trend of subdued consumption, referred to as slowdown is being cited by economy watchers as the prime reason for the successive fall in GDP growth rate.
Consequently, all the major sector’s including automobile, capital goods, banks, consumer durables, FMCG and real estate have been heavily battered.
In terms of production, the output of manufacturing, mining and electricity generation among others have plunged causing job losses.-IANS news
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